"[Virtual currencies] may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system." - Ben Bernanke, ex-Chairman of the US Federal Reserve.
Eye-watering cryptocurrency price appreciation was the speculator’s delight of 2017. Two of the major cryptocurrencies, Bitcoin and Ether,¹ rose by around 1,400% and 9,000%² respectively over the calendar year, while an index of leading cryptocurrencies rose by approximately 2,800%.³ Rapid price appreciation, the proliferation of new coin launches (initial coin offerings, or ICOs) and widespread excitement around cryptocurrencies suggest the existence of a speculative bubble.
In this paper, we outline the drivers of cryptocurrency enthusiasm and consider some of the challenges ahead for cryptocurrencies. Fill out the form below to download the PDF and learn more about this topic.
1 Ether is the cryptocurrency associated with the Ethereum network.
2 WorldCoinIndex, available at https://www.worldcoinindex.com/coin/.
3 CRIX — CRyptocurrency IndeX, a market-cap-weighted index of 75 leading cryptocurrencies, available at http://crix.hu-berlin.de/.
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